I don't understand the problem its trying to solve in the first place, IP works just fine, such as DNS.
There is already IPv6 and quic, you need vendor and major software to have any traction in that field.
I'm not affiliated with Iroh or even using it, but... "IP works just fine". What!? This is _not_ a solved problem
Establishing direct connections on the other hand is a much harder problem with the current internet infrastructure.
From what I can tell Iroh seems to be trying to create the missing Session layer from the OSI model. Another example of trying to do this is Cisco's Location-Identity Separation Protocol.
Lack of a true session layer in TCP/IP is why vmotion is normally only possible in a single broadcast domain because in this situation you only really use mac addresses for addressing and can thus use the IP as a stable identifier when the MAC address changes after a vmotion. And the switch mac address table handles the mapping.
DNS isn't decentralised it's more federated. I believe Iroh has the option to use DHT here, last I looked at least.
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Iroh is QUIC. We are not trying to reinvent the wheel here, just combining existing IETF RFCs in a creative way.
Here is a concrete problem we solve. You have one device in your home WLAN behind a NAT. Your other device is in a 4g network, or behind another NAT at work.
In most cases we can give you a direct connection between the two devices very quickly via hole punching, so you get the highest possible bandwidth and the lowest possible latency.
This was not a solved problem until now.